US Q2 GDP Overview
Thursday's US economic docket highlights the release of revised US Q2 GDP growth figures, scheduled to be published at 12:30 GMT. The second estimate is anticipated to show that the economic growth in the April-June quarter stood at 2.0% annualized pace as against the advance estimate of 2.1%, marking a sharp deceleration from the first quarter's final print of 3.1%.
as Joseph Trevisani - FXStreet's own Analyst explains - “The relatively small percentage of US GDP that stems from manufacturing, 12%-15% and the even smaller percentage due to exports 3%-5% are not sufficient to derail overall growth based on an expansive consumer. Their relative decline, however, has probably restricted economic activity to a 2.0%-2.5% range.”
Deviation impact on EUR/USD
Readers can find FX Street's proprietary deviation impact map of the event below. As observed the reaction on the pair, in case of a deviation between +0.68 to -0.82, is likely to be in the range of 20-34 pips in the first 15-minutes and could extend to 45-pips in the following 4-hours.
How could it affect EUR/USD?
Ahead of the important release, Yohay Elam, Analyst at FXStreet provides important technical levels to trade the EUR/USD pair – “Support awaits at 1.1050, which provided support late last week. The next level to watch is 1.1027 – the 2019 low. 1.1000 and 1.0960 are next.”
“Resistance awaits at 1.1115, which has capped the pair several times in recent weeks. It is closely followed by 1.1130 – twice a support line – and by 1.1165,” he added further.
Key Notes
• US second quarter GDP 1st revision preview: Consumers are sufficient for 2%
• EUR/USD path of least resistance is down ahead of critical data – Confluence Detector
• EUR/USD analysis: Weak price action continues ahead of German CPI, US GDP
About the US GDP
The Gross Domestic Product Annualized released by the US Bureau of Economic Analysis shows the monetary value of all the goods, services and structures produced within a country in a given period of time. GDP Annualized is a gross measure of market activity because it indicates the pace at which a country's economy is growing or decreasing. Generally speaking, a high reading or a better than expected number is seen as positive for the USD, while a low reading is negative.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.